Nintendo is reportedly cutting back Switch 2 production by 33% as US sales underperform
Nintendo will produce 4 million units of the Switch 2 this quarter, down one-third from its original 6 million-unit target, according to a report by Bloomberg.
The decision, spurred by weaker-than-expected US holiday sales, is not expected to impact estimates of 20 million Switch 2 unit sales for the fiscal year ending this month.
Nintendo ADRs were down 6% in US premarket trading, and shares closed down nearly 5% in Tokyo. With Tuesday morning’s drop, Nintendo ADRs have entirely shed their gains from the unexpected success of “Pokémon Pokopia.”
Weaker holiday sales weren’t just a Nintendo problem: the season saw the worst November in 30 years for overall American gaming console unit sales, per data from Circana. The Switch 2 rebounded in December, but reports that the company would stop producing its popular (and pricier) “Mario Kart World” bundle dampened investors’ moods again toward the end of the year.
Nintendo ADRs were down 6% in US premarket trading, and shares closed down nearly 5% in Tokyo. With Tuesday morning’s drop, Nintendo ADRs have entirely shed their gains from the unexpected success of “Pokémon Pokopia.”
Weaker holiday sales weren’t just a Nintendo problem: the season saw the worst November in 30 years for overall American gaming console unit sales, per data from Circana. The Switch 2 rebounded in December, but reports that the company would stop producing its popular (and pricier) “Mario Kart World” bundle dampened investors’ moods again toward the end of the year.
